Investing in start-ups is all the rage among sports stars. More and more football and basketball players are giving a small part of their fortunes to start-ups.
The most notorious case this week has been that of Lionel Messi, who has launched Play Time Sports-Tech, an investment fund based in San Francisco that will invest in Silicon Valley companies in the digital and communications sectors. Recently, the Gasol brothers have also announced their entry into the shareholding of several start-ups. Pau Gasol has invested in Colvin, a Barcelona flower delivery platform, and in Indya, a Valencian sports nutrition firm that has also received the support of pilots Aleix Rins and Aleix Espargaró. Meanwhile, his brother, Marc Gasol, has just become a shareholder in Dux Gaming, a Barcelona sports video game firm, and also in the Kleta bicycle company, which has also received financing from soccer player Marc-André ter Stegen.
The list is long. Gerard Piqué has always been the most active Barcelona footballer in the business world. Through his company Kosmos he controls several businesses in the world of sports and audiovisual and has invested in video game start-ups such as Sorare and Goals. Last year, his colleagues Sergi Roberto, Cesc Fábregas, Saúl Ñíguez and Chris Smalling became shareholders of Heura, a Barcelona start-up that markets meat made with vegetable protein. Meanwhile, Andrés Iniesta has recently launched Never Say Never, a company that invests in and advises emerging firms in the world of entertainment and sports. This year, Iker Casillas has also launched a start-up accelerator, Sportboost, which has the support of Wayra (Telefónica).
“The interest of elite athletes in start-ups is a growing trend and I don't think it's a passing fad. Technology is very present in the lives of young people and it is natural for them to invest in technology companies, especially if they are related to e-sports or if the businesses are aligned with their values. In addition, the main sports clubs have innovation hubs and technology is getting closer to sports," notes Antonio Matilla, head of the professional athletes business at CaixaBank Private Banking in Madrid, who points out that athletes used to invest this money in restaurants, wineries and franchises.
Matilla explains that the most surprising thing about this new trend is the high risk involved in investing. “The probability of failure in a start-up is high and to date footballers used to manage their savings very conservatively, trying to preserve their fortune as much as possible given that their main source of income ends at a relatively early age, when they retire. of sports practice”.
However, investing in emerging companies has little significant weight in managing your fortune. According to Matilla, sports stars usually invest between 40 and 50% of their savings in financial assets, between 35 and 45% in real estate assets and between 5 and 25% in alternative investments. It is within this last area where financing for start-ups is found. "Before, the players used this money for the hospitality sector, an activity that has now been replaced by the technological world." The person in charge adds that players always have specialized advice to minimize risk and that they usually invest small amounts of money –several thousand euros, well below a million euros– in companies that are in their initial phases.
In addition to the intrinsic attractiveness of the sector, entry into start-ups is also seen as a professional opportunity. "Many times the players not only act as investors, but also get involved in the business as advisers and that can be a good professional option once they leave the club."
As for companies, Matilla says that the entry of a sports star in the shareholding is usually useful because of their experience as consumers, but above all because of the attractiveness and claim of their image in the market.
